The persistence in Hong Kong equity funds that focus on growth firms' performance

Abstract

This paper tests whether or not the Hong Kong equity growth funds have performance persistence. The research uses a sample of thirty-eight Hong Kong equity funds over the period 2008-2012 for the significance of the persistence in funds’ performance. The result shows that no statistically significant values are achieved out of 38 funds examined even at the 10% significance level, which means there is no performance persistence in Hong Kong equity funds. In contrast, there are four equities confirm performance reversal. Fund managers may not keep on outperforming the market, but based on the total changes in the funds’ NAV, they all outperform the Hong Kong stock market.